Casella Waste Systems (CWST) Q4 2024 earnings summary

Executive summary

• Achieved strong growth in 2024, with revenues, Adjusted EBITDA, and Adjusted Free Cash Flow each increasing over 20% year-over-year, marking three consecutive years of 20%+ Adjusted EBITDA growth.

• Q4 2024 revenues reached $427.5M, up 18.9% year-over-year, with full-year revenues at $1.56B, up 23.1% from 2023, driven by acquisitions and price growth.

• Net income for Q4 was $4.9M, a $6.7M improvement from Q4 2023; full-year net income was $13.5M, down 46.7% year-over-year due to higher expenses and charges.

• Closed eight acquisitions in 2024 totaling over $200 million in annualized revenues and three more in early 2025 with $40 million in annualized revenues.

• Expanded operations to 10 states and surpassed 5,000 employees, integrating hundreds of thousands of new customers.

Financial highlights

• Q4 2024 revenues were $427.5 million, up 18.9% year-over-year, with $50.1 million from acquisitions and $17.8 million from organic growth.

• Adjusted EBITDA for Q4 was $95 million, up 15.6% year-over-year; full-year Adjusted EBITDA was $360.6M, up 22.4%.

• Adjusted net income was $25.8 million in Q4, up $8.7 million year-over-year; Adjusted EPS was $0.41 for Q4 and $1.35 for FY 2024.

• Net cash from operating activities was $281.4 million in 2024, up $48.3 million; Adjusted Free Cash Flow was $158.3 million, up 23%.

• Solid waste pricing increased 5.7% in 2024, with 6.5% growth in collection and 3.9% in disposal.

Outlook and guidance

• 2025 revenue guidance: $1.775–$1.805 billion (15% growth at midpoint); Adjusted EBITDA: $410–$425 million (16% growth); Adjusted Free Cash Flow: $165–$180 million.

• 2025 net cash from operating activities expected at $320M–$335M.

• Guidance includes $170 million from acquisitions and 4% organic growth; assumes stable economic and inflation environment.

• Solid waste pricing expected to rise ~5% in 2025; volumes expected flat to down 1% due to churn in new acquisitions.

• Guidance excludes impact from future, uncompleted acquisitions.